December 22, 2024

South Florida's sagging home prices are likely to drop even more within two years, according to a study released Tuesday by the PMI Mortgage Insurance Co. of Walnut Creek, Calif.

"The downward trend remains firmly in place and there is no prospect of any near-term relief, given the huge inventory overhang in the new home market," said Ian Shepherdson, chief U.S. economist for High Frequency Economics.

"The tightening in lending standards is having quite an impact," said David Seiders, chief economist for the home builders. He predicted that home sales would likely fall further in coming months with a sustained rebound not occurring until 2008.   [tags]Florida housing, housing bubble, real estate bubble, home sales[/tags]                             downtown San Diego real estate

3 thoughts on “Florida Housing – Drop to Continue for Two More Years

  1. Peter Lynch has been quoted as saying the following:
    “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”
    Peter understands this is reality. Do you? Just as there are ups and downs in the stock market, there are ups and downs in the real estate market. Welcome to reality!

    Brad
    San Diego California Cosmetic Surgery

  2. onsumer demand will drop. Unemployment will rise. The US will go into a recession at best, a depression at worst. Expect first stagflation (high inflation and high unemployment), both because of the increased price of imports and deliberate pump priming by the Fed, then deflation, as asset prices collapse so hard they take everything else with them. The other likely scenario is stagflation followed by hyperinflation. Formal inflation numbers put out will become not just a joke amongst market-watchers, but amongst the actual population. Same thing with unemployment numbers.

    Isaac
    SF CA law

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